This is the number one in all our analyses. US dollar last wish is to save US Corp. Without US Corp. it will be out of existence. Please check two previous charts why it is so important now. US dollar last favor to the new world - is to go down now, next week. Stronger dollar is a Deflation Monster, killing the US Economy and taking down world economy with it. Those with higher Debt are in the worst shape in deflation: real money repayed back are Increasing in value! US Corp is the Victim here. Inflation is the only way out. There is a chance to save US Corp. - it will never be an Empire again and it does not need to be any more. With new energy it could come back leaner, wiser and stronger eventually. Action is needed this weekend to help the dollar go down. Coordinated Cut which could be announced and Intervention in the Forex in Yen and US Dollar. Agreement could be cut and China could agree to manageable debasing of USD: everything is ready. US Dollar is at the Double Top, one definite action and it will break down. With weaker dollar we will have tectonic shift in Inflation expectations. With near zero short rates managed by FED and falling dollar long term rates in the form of Treasury Yield will go Up. Banks will be able to function and earn on their lending. With rising assets prices, fear will subside and greed will return back with changing perception of lost performance, all money on the sidelines will chase it again. Weak dollar - Lending recover - Velocity is Up - Inflation - Rising assets prices - Less redemptions - Less margin calls - No fire sells - Back to fundamentals - Debt is going down in real terms - Liabilities of US Corp to subjects are going down in real terms - Derivatives on the End of the world outcome are becoming worthless and could be isolated - Export is Up supporting economy with struggling consumer - Tax returns are up with inflation - Housing will bottom at lower level in nominal value (do not ask me about real value). Survival.
So where is out bottleneck for all those trillions and worthless money - as usual: Gold, Silver, Commodities. First time in this game for 7 years our interests aligned: FED should even Buy some Gold to push it up to 1000 to show that Inflation and not Deflation is coming. Will we get at least something of what we are talking here about: charts are telling that everything is ready, players have made their moves and we can see their footprints, tons of money will be made as usual by those in the know, but it is the only chance to save the world from lost decade Japan style.
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